SSL boss thanks Manchester

THE boss of Durex condoms and Scholl footcare products firm SSL International hailed the contribution of its 300-plus strong team in Greater Manchester as he unveiled a surge in annual sales and profits. SSL has its operational headquarters and a research hub near the Trafford Centre, which benefited as the company ploughed £12m into innovation activities during the last financial year.

THE boss of Durex condoms and Scholl footcare products firm SSL International hailed the contribution of its 300-plus strong team in Greater Manchester as he unveiled a surge in annual sales and profits.

SSL has its operational headquarters and a research hub near the Trafford Centre, which benefited as the company ploughed £12m into innovation activities during the last financial year.

The investment led to new condoms and Durex Play products, including lubricants and vibrators, as well as Scholl footcare items such as a nail protector and specialist insoles developed in partnership with Salford University 's School of Podiatry,

Chief executive Garry Watts said: "A big slug of our investment was in Manchester - it's a key part of the organisation - and we are seeing the benefits of that spending."

Group profits for the year to March 31 climbed by a third, from £57.4m to £76.5m, as overall sales rose 20.3 per cent from £533.9m to £642.4m.

Shares gained 5.7 per cent, or 26.2p, to 486p, adding £55m to SSL's market value of £970.8m, as the group hiked its final divided by 20.8 per cent, from 5.3p to 6.4p, making a total of 9p for the year, up from 7.6p.

Mr Watts said the results were ahead of expectations and showed how efforts to transform the business were coming to fruition. Measures taken in the past year included switching manufacturing from Europe to India and the Far East.

SSL is also due to shortly open a £15m condom factory in China.

It has sites in 35 countries, with a total workforce of 7,500. This will rise to over 10,000 once it completes an acquisition in Russia.

Mr Watts said he may look at swoops in countries such as Argentina, Brazil, Mexico, Korea, Japan and Vietnam.

Durex product sales rose 7.3 per cent last year to £266.9m, with Durex Play accounting for £43.3m, up 17.7 per cent. Scholl footcare sales increased 11.4 per cent to £143m while footwear revenues were ahead by 5.1 per cent at £92.9m.

SSL, which also has a distribution centre in Middleton, has scrapped its old target of 10 per cent annual operating profit growth and imposed a new benchmark of increasing earnings per share by at least 50 per cent in 2012.

Mr Watts said: "We have again outperformed our targets, notwithstanding the challenge of the difficult consumer environment. By driving growth in our core brands, Durex and Scholl, through the introduction of innovative products and effective marketing, we believe we are well placed to continue to exploit opportunities in all of our markets.

"While the outlook remains challenging, the new financial year has begun in line with our expectations."